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AMENDMENT TO TENDERING THRESOLD AMOUNT

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					ITEM 3.                CONTRACTS POLICY – AMENDMENT TO REFLECT
                       INCREASED TENDERING THRESHOLD AMOUNT

FILE NO:
DATE:    12/1/05



                 MEMORANDUM BY THE ACTING GENERAL MANAGER


To Council:

Section 55 (3) of the Local Government Act 1993 provides that tendering is not required
for a contract involving an estimated expenditure of less than $100,000.

The amount of $100,000 in section 55 has been increased to $150,000 by the Local
Government (Tendering) Amendment (Threshold Amount) Regulation 2004. Prior to
this, the tendering threshold had not changed since the commencement of the Local
Government Act in 1993.

This Regulation was published in Government Gazette No. 200 on 17 December 2004. A
copy is Attachment “A” to this Memorandum.

Council’s Contracts Policy sets out the process to be followed where expenditure is below
the tendering threshold of $100,000. In general terms, the Contracts Policy presently
requires:

     (a)        3 written quotes for proposed expenditure between $10,000 and $50,000; and

     (b)        the General Manager to determine whether 3 quotes, or a tender, is required for
                proposed expenditure between $50,000 and $100,000.

In view of the increase in the tendering threshold, it is appropriate to amend Council’s
Contracts Policy to reflect the increased threshold of $150,000. It is proposed that:

     (c)        3 written quotes are required for proposed expenditure between $10,000 and
                $100,000 (previously $50,000); and

     (d)        the General Manager to determine whether 3 quotes, or a tender, is required for
                proposed expenditure between $100,000 and $150,000 (previously $50,000 to
                $100,000).

A revised Contracts Policy, with amendments to give effect to the above, is Attachment
B. Amendments are highlighted.




ITEM 3.DOC002                                                                         12/1/05 5:03PM
CONCLUSION

The Contracts Policy deals with procurement processes both above and below the
tendering threshold amount. In view of the increase of that amount to $150,000 it is
appropriate that the Contracts Policy also be amended to reflect the increased threshold
amount.


RECOMMENDATION:
That arising from consideration of a Memorandum by the Acting General Manager to the
Extraordinary Meeting of Council on 13 January 2005, on Contracts Policy – Amendment
to Reflect Increased Tendering Threshold Amount, it be resolved that the amended
Contracts Policy, as attached to the subject Memorandum, be adopted.




(SGD) PETAR VLADETA
Acting General Manager




ITEM 3.DOC002                                                                  12/1/05 5:03PM

				
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Description: AMENDMENT TO TENDERING THRESOLD AMOUNT